Admitted Rajaratnam Tipster Settles SEC Insider-Trading Case

May 18 2010 | 11:12am ET

Anil Kumar, the former McKinsey & Co. executive who said that Galleon Group founder Raj Rajaratnam paid him for insider tips, will pay $2.8 million to settle civil charges related to the case.

Kumar agreed to pay $2.6 million in restitution and more than $190,000 in prejudgment interest to settle the Securities and Exchange Commission lawsuit, filed against him after he was arrested last year and charged with passing on confidential information about McKinsey clients to Rajaratnam.

Kumar pleaded guilty in January to conspiracy and securities fraud as part of a plea deal with prosecutors. He told a judge that the Galleon founder paid him as much as $2 million for tips between 2004 and last year—an allegation that Rajaratnam, who has pleaded not guilty, denies.

Kumar faces up to 25 years in prison when he is sentenced, but is likely to get far less due to his cooperation with the investigation.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...